In a strategic move to combat rolling blackouts and bolster the nation’s power infrastructure with renewable energy solutions, the U.S. International Development Finance Corporation (DFC), represented by Deputy Chief Executive Officer Nisha Biswal, joined forces with Sierra Leone’s Chief Minister, David Moinina Sengeh, to announce a groundbreaking financial initiative totaling up to $412 million.
The financing arrangement comprises a substantial loan of up to $292 million to the Western Area Power Generation Project, based in Freetown, aimed at enhancing and modernizing the power plant’s infrastructure. Additionally, DFC is set to provide up to $120 million in political risk insurance to attract private investment, with further support from a $40 million loan from the ECOWAS Bank for Investment and Development (EBID).
“Sierra Leone’s vision for a sustainable energy future is on the brink of realization,” expressed DCEO Biswal. “DFC takes pride in backing the nation’s inaugural large-scale, independent power endeavor, laying the groundwork for dependable and cost-effective electricity access across Sierra Leone.”
The project, spearheaded by Milele Energy and TCQ Power, marks a significant milestone as Sierra Leone’s first utility-scale independent power initiative. Shapoorji Pallonji is slated to oversee construction, with Siemens Energy providing gas and steam turbine equipment, alongside long-term servicing and maintenance.
Echoing sentiments of optimism, Sierra Leone’s Chief Minister affirmed, “Our commitment to providing reliable, clean, and sustainable energy solutions is unwavering. Through innovative public-private partnerships like this, we prioritize impactful progress, ensuring support for our national development objectives.”
U.S. Ambassador to Sierra Leone, Bryan David Hunt, hailed the project’s potential to revolutionize the nation’s energy landscape, fostering progress and prosperity.
“The United States stands proud in supporting this private sector initiative, poised to uplift communities nationwide,” he stated.
Milele Energy CEO Erik Granskog expressed gratitude for the support, emphasizing the transformative impact on Sierra Leoneans’ lives. “This project will lower costs, enhance reliability, and stimulate industrial growth, unlocking critical energy potential,” he remarked.
Similarly, TCQ Power Limited CEO Karim Nasser underscored appreciation for DFC and EBID’s backing, emphasizing a shared commitment to Sierra Leone’s populace. “We are dedicated to delivering sustainable power solutions, advancing the nation’s prosperity and resilience,” Nasser affirmed.
The collaboration between DFC and Sierra Leone reflects a concerted effort to foster economic growth, sustainability, and resilience, aligning with broader developmental objectives.
About DFC:
DFC collaborates with the private sector to finance solutions to the most pressing challenges in the developing world, spanning sectors such as energy, healthcare, infrastructure, agriculture, and small businesses. DFC’s investments adhere to stringent standards, respecting environmental, human, and worker rights.
About Milele Energy:
Milele Energy, established by former GE Africa executives, operates as an independent power-generation company across Sub-Saharan Africa. Leveraging renewable and clean gas technologies, Milele aims to empower lives and communities, supported by Gemcorp Capital.
About TCQ Power:
TCQ Power specializes in turnkey power project development, focusing on the MENA markets. Through collaboration with local governments and suppliers, TCQ Power mitigates risks, delivering sustainable, operable assets to host nations.
